Vietnamese pepper likely to go up in price

The Ministry of Agriculture and Rural Development (MARD) forecasts that the price of pepper in the world market will continue to rise due to a sharp decrease in supply.

The Ministry of Industry and Trade’s Trade Information Centre reported that this year’s pepper output for Vietnam and India – the first and second biggest black pepper producers and exporters in the world – fell by 20 percent and 30 percent, respectively. In addition, pepper production of other countries, including Indonesia and Malaysia, failed to produce satisfactory results.

The global pepper output is estimated to drop by 60,000 tonnes this year, lower than the World Pepper Association’s forecast or down by 18 percent year on year to around 230,000 tonnes.

Pepper shortages have led to an increase in the world prices which hovered around US$3,300-US$3,800 per tonne in June, a year-on-year rise of around 80 percent.

This helped to boost Vietnam’s pepper exports in the second quarter of 2010 to US$3,170 per tonne, an increase of 4.8 percent over the first quarter of the year and 40.5 percent year on year.

The country exported 75,000 tonnes, earning US$234 million in the first half of the year, representing year-on year increases of 9 percent in volume and 47.3 percent in value.

Pepper prices in the domestic market have also increased over recent months to VND60,000 per kg in June, a year-on-year increase of 67 percent.

MARD warned businesses not to sign big export contracts to ensure adequate supplies to export when the price is high.

Tags: Vietnam Pepper, Vietnam Pepper prices